Tuesday, January 16, 2018

Getting Rid of Inventory When Closing a Small Business

Not
all business ventures have a happy, successful ending. When the best
thing to do is to just close up shop, what do you do with all of your
business' physical assets? Getting rid of inventory after a business
closure- things like left over products, equipment, and materials-
should to be dealt with thoughtfully.

Cleaning
House

Closing
a business is a lot like moving: you don't realize how much stuff you
own until you have to pack it all up. As you go through the process
of winding down your operations and closing any loose ends, you
should take stock of any valuable business assets that will need to
be liquidated. Some commom items include:

Products
for sale

Raw
goods used for product production or the delivery of a service

Tools,
equipment, and appliances

Office
furniture

Office
supplies

Computers
and other electronic devices

Company
Vehicles

How
to Get Rid of Unused Inventory When a Small Business Closes

You
have several options when it comes to liquidating your company's
physical assets:

Hold
a “Going Out of Business” sale.
Also called a “liquidation sale,” this is one of the most
commonly used methods among retail operations for getting rid of
unsold products. Typically, these sales are advertised several days
in advance and heavy discounts are placed on all remaining items.

Hire
a Liquidation Company. These
companies, called “inventory liquidators,” will buy up unused
inventory for resale. This method promises quick access to capital
should it be needed. But, expect that your products will be purchased
well below the sale price.

Sell
the Items Online. If you want
to auction off your inventory and equipment online, you can either do
it yourself via sites such as Ebay or
any of its alternatives,
or you can use the services of an inventory auctioning company.

Return
Unused Inventory to Vendors.
You may also in some cases be able to return unused inventory to the
vender who supplied it to your business.

Sell
Inventory to the New Owner. If
you are not really closing down the business, but are instead selling
it to another individual, company, or organization, then you should
consider including excess inventory and assets as part of the sale.
Of course, make sure to check in with a qualified professional, such
as a lawyer or accountant for advice on how to do this properly.

Give
Inventory to Charity. Your last
option may not help you to recover some of your losses, but it could
leave you with a warm feeling in your heart. Some or all of your
assets could be donated to a charity to either distribute among those
in need, or to resell for money.

Which
ever option you choose, with a little forethought those unwanted
items can give you some much wanted value.